As the world continues to better cope with COVID-19, foreign markets are gradually opening, creating opportunities for local SMEs to expand overseas. While expanding into a new market involves risk and can be costly, Singapore SMEs can tap on to the Market Readiness Assistance (MRA) Grant, to support the expansion financially.
With the availability of the MRA grant, local SMEs can now receive up to 50% funding support from Enterprise Singapore for eligible activities relating to overseas expansions, significantly reducing capital costs that are typically associated with overseas ventures.

 WHAT IS THE MARKET READINESS ASSISTANCE (MRA) GRANT?

The MRA grant is supported by Enterprise Singapore. It is for local companies that are looking to expand their businesses beyond Singapore. The MRA grant helps local companies with the market entry of their businesses overseas, providing funding support for several overseas market entry activities.

BENEFITS OF APPLYING FOR THE MRA GRANT

Currently, the grant supports up to 50% of eligible costs, and it will be available till 31 March 2025.
 
Local businesses can also leverage on the grant to work directly with Enterprise Singapore’s recognised vendors, which specialise in supporting businesses entering foreign markets via activities such as business matching events.

  Market Readiness Assistance (MRA) Grant scope

1. Overseas Market Promotion – Grant capped at S$20,000
Supporting activities include: 
· Participation in Overseas Physical Trade Fairs: Third-party costs charged by event organisers relating to space rental and booth design and construction.
 
· Virtual Trade Fairs:  Fees charged by event organisers relating to virtual exhibition hall and booth access, collateral creation, business meeting sessions, product launches, and post event analytics
 
2. Overseas Business Development – Grant capped at S$50,000
Supporting activities include:
· Business Matching: Third-party costs incurred to identify potential partners and/or customers, including licenses, agents and joint venture partners.
 
· Overseas Marketing Presence: Purpose of marketing and business development; Project-specific eligible expenses include the salary of one permanent business development employee and rental of office space.
 
· In-Market Business Development: Third-party costs relating to subscription costs of outsourced business development services for up to 12 months.
 
3. Overseas Market Set-up – Grant capped at S$30,000
Supporting activities include:
· Market Entry: Advisory, legal and documentation expenses relating to name search, intellectual property search and application, filing and registration for sale or representative offices or equity entity, implementation of recommended tax structures, import and export licenses, drafting franchising, licensing, agency, distributorship and joint venture agreements, trade credit insurance.

  Expenses not supported under the MRA Grant

The following expenses are not supported under the MRA Grant：
· Out of pocket expenses (Singapore GST, exchange rate losses, etc.)
· Logistics for overseas physical trade fairs, airfare, accommodation, in-house manpower, maintenance, security deposit and sales commission
· Costs charged by other Singapore Government Agencies
 
Overseas Market Promotion
· Production of corporate brochures
· Costs incurred for the purpose of fulfilling contractual obligation with clients
· Standalone costs such as food and beverage, photography, emcee costs, email marketing, placement of ad-hoc print advertisements unless it is part of a holistic marketing or public relations campaign.
 
Overseas Business Development
· Commission
· Subscription to generic directories or databases
· Costs related to sourcing for suppliers, investors, capital raising, selling of company’s shares
 
Overseas Market Set-up
· Assistance with Customs Authorities post-audit Free Trade Agreement (FTA) checks
· Application for Advanced Ruling with Singapore customs
· Costs required to operationalise the business
· Costs related to appointment of Power of Attorney
· Corporate secretariat services
· Paid up capital
· Annual registered office address or lease contract
· Custodial director service
· Individual director tax registration
· Costs related to manpower issues such as employee recruitment/work permit/visa
· Product certification/testing costs
· Trademark/Patent filings for Singapore

ELIGIBILITY CRITERIA FOR THE MRA GRANT 

The MRA grant is only eligble for businesses that fulfil the following criteria:
· The business entity is registered or incorporated in Singapore.
· The business needs to meet the new market entry criteria of the targeted overseas country. The applicant must not have exceeded S$100,000 in overseas sales annually in each of the past 3 preceding years.
· The business must consist of at least 30% local shareholding.
· The group annual sales turnover should not exceed beyond S$100 million; or the company’s group employment size must be less than 200 employees.
 
Note:
· The maximum support period for an approved MRA activity is 12 months.
· A company can apply for multiple MRA grants for each new market if the projects are within each activity grant sub-cap.
· You are not eligible to apply for the MRA grant if you are planning to grow your business in Singapore.  

Applying for the MRA Grant can help your company to receive an international boost and take your business overseas. New Ark provides one-stop customized services to address our clients’ enquiries on company registration, accounting and taxation, follow-up maintenance and the application of government grants. If you have any queries, please feel free to contact our professional team via WhatsApp +65 8830 8077 or WeChat NewArkSg for more information.